The IRS has released a guide for reporting 1099s, 1098s and other various forms. The guide provides useful information including the title of what the form is reporting, the responsible party for what the form reports, a link to the form and the instructions, the amounts required to report, the date the form is due to the IRS, and the date the form is due to the recipient.
The guide is broken up into categories to make it easier to navigate. The categories are: General Reporting, Education Reporting, Health Insurance Reporting, Transfers of Stock Reporting, Retirement Reporting.
The two categories most important to taxpayers are the amounts required to report and the date the form is due to them as the recipient. Businesses, nonprofit organizations and financial institutions can use the Guide to 1099 Reporting to check when 1099 forms need to be prepared.
The guide includes helpful information on Interest and dividend income. Taxpayers only receive a Form 1099 for this income if it is above ten dollars, so when sending their tax information to their accountant they might not have a 1099. Just knowing the threshold on receiving the form could strike up the thought to either include the amount themselves or inform their accountant why they do not have one.
Knowing the dates the recipients should receive their documents is useful. It can give accountants a guideline on when to expect their clients’ needed documents for their tax return. It also gives the taxpayer a good timeline for when to expect their forms so they do not tell their accountant that everything they sent is all they have when they are actually waiting on their 1099-B that will not come until February 15.
While this guide can be a great starting point for anyone looking for information on 1099s and 1098s, it’s always beneficial to reach out to your accountant for help. If you have any questions, please contact your Henry+Horne advisor.